Kodiyathoor Service Co-op Bank refutes allegations of financial instability
The management of the bank has come forward after a stakeholder raised allegations with the registrar of cooperative societies.
The management of the bank has come forward after a stakeholder raised allegations with the registrar of cooperative societies.
The management of the bank has come forward after a stakeholder raised allegations with the registrar of cooperative societies.
Kozhikode: As Karuvannur Service Co-operative Bank in Thrissur reels under a multi-crore scam, the management of a financial institution in Kozhikode has stepped up to refute allegations of financial instability.
Addressing a press conference here on Friday, the management of Kodiyathoor Service Co-operative Bank said there was an attempt to tarnish the image of the institution. According to vice-president Santosh Sebastian, the Kodiyathoor Service Co-operative Bank is one of the best in the state.
K Balakrishnan, a stakeholder in the bank, had filed a complaint with the assistant registrar and the registrar of cooperative societies alleging that the Kodiyathoor bank diverted funds and loan amounts without the permission of the governing body.
“There are no serious financial irregularities mentioned in an audit report,” said the representatives of the bank's management. “There were a few minor issues which have been sorted and the department has been notified. The bank has purchased lands with the permission of the cooperative department as part of diversification, and each asset has valid documents. We can prove it anywhere,” they said.
According to the audit report of 2021-22, the bank is at a loss, but the management has said that is due to non-repayment of the loans by consumers after Covid and floods. They have argued that the bank continues to function normally.
One of the main allegations against the bank was that it diverted funds for the functioning of a private company. But the bank management has said the company in question, Cosco Ventures, is a firm it started under the Co-operative Rule 14 -A with technical permission from the joint registrar of the Co-operative Department. The management representatives said that the bank owns a 60 per cent share in the company while the rest is with the public.
As per the accounts till March 31, 2023, the bank has a total of Rs 368.07 crores as deposits in addition to pending dues of Rs. 399.39 crores against loan repayment. The bank management has pegged its working capital at Rs 523.6 crores besides assets worth Rs 75 crores.